Sebi proposes disclosure norms for InvITs

The Securities and Exchange Board of India (Sebi) has issued a consultation paper on financial disclosures to be made by the newly-introduced Infrastructure Investment Trusts (InvITs). Comments have been invited by June 28.

It has proposed that annual disclosure to stock exchanges be on a quarterly basis, not half-yearly as suggested earlier. Other disclosures to an exchange would be made within 45 days of the end of each quarter or half-year as applicable. Audited standalone results for the financial year to be sent within 60 days from the end of the year, along with the audit report.

It has proposed detailed financial statements, on both a standalone and consolidated basis, “to be prepared in accordance with the Indian Accounting Standards, converged with the International Financial Reporting Standards notified under the Companies (Indian Accounting Standards) Rules, 2015”, Sebi has said.

The earnings statement to a stock exchange should be signed by two designated personnel of the investment manager, certifying that these have no false or misleading statement

“Every InvIT shall maintain proper books of account, records and documents, etc, relating to a period of not less than eight financial years immediately preceding a financial year or where the InvIT had been in existence for a period of less than eight years, in respect of all the preceding years."

InvITs shall enter into a simplified listing agreement with the designated stock exchange, as specified. Disclosures with respect to related party transactions must have the latter details and relationship with the InvIT.

The proposed framework is intended to be a broad guidance and every InvIT or investment manager shall define net distributable cash flows for itself.